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Learning, Sharing, and Teaching => Investor Alley => Topic started by: Wadiman on December 05, 2015, 07:53:04 PM

Title: 'Core and Satellite' investment allocation
Post by: Wadiman on December 05, 2015, 07:53:04 PM
Hi -

Anyone following this concept?

Basically, the idea is to hold a significant proportion in index funds and the balance in direct equities (in solid companies; holding for a 5+ year period).

While perhaps not as popular a strategy for Mustachians as the straight index fund holdings, from my research, if you believe that there is long-term value and opportunity in a number of specific themes or companies it looks promising.

I am tending towards a 60% core and 40% satellite covering individual equities in renewable energy, food companies, healthcare and telecommunications).

Title: Re: 'Core and Satellite' investment allocation
Post by: protostache on December 05, 2015, 08:12:41 PM
I hadn't heard the term before, but this is sort of what I'm doing. The core of my holdings is VTSAX, and then I have (currently) 19 different individual positions, purchased at equal weight. Most of them are already covered by VTSAX so they're more of a tilt, but I hold positions in a handful of international companies that aren't. All but one have a solid dividend history, and the remaining one is Berkshire Hathaway.